Bringing you live news and features since 2006 

Court dismisses Jenkins’ appeal


The US Court of Appeals for the First Circuit has entered an order dismissing the appeal of Leila C Jenkins, the principal of Rhode Island-based investment adviser Locke Capital Management.

Jenkins had appealed a 30 June, 2011 decision by a federal judge in the US District Court for the District of Rhode Island. That decision granted the Commission’s motion for summary judgment and entered final judgments against both Locke and Jenkins. The Court of Appeals dismissed Jenkins’ appeal after she filed a motion to withdraw it.

The Commission’s Complaint against Locke and Jenkins, filed in March 2009, alleged that they invented a billion-dollar client in order to gain credibility and attract legitimate investors. The Complaint further alleged that Jenkins tried to perpetuate her scheme by lying to the Commission staff about the existence of the invented client and furnishing the Commission’s staff with bogus documents in 2008, including fake custodial statements that she created on her laptop.

The US District Court ordered that Locke and Jenkins were jointly and severally liable for disgorgement of USD1,781,520, representing advisory fees paid to them from 2007-2009, plus prejudgment interest of USD110,956. In addition, each defendant was ordered to pay a penalty of USD1,781,520. The final judgments permanently enjoined Jenkins and Locke from violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1), 206(2), and 207 of the Investment Advisers Act of 1940 (Advisers Act”). The final judgment as to Locke also permanently enjoined it from violating Sections 204 and 206(4) of the Advisers Act and Rules 204-2(a)(6), (8), (10), (15), and (16), as wells as 206(4)-1(a)(5) thereunder, and the final judgment as to Jenkins further permanently enjoined her from aiding and abetting violations of the same law sections. The final judgment as to Locke further permanently enjoined it from violating Section 204A of the Advisers Act and Rule 204A-1 thereunder.

In February 2012, in separate administrative proceedings filed by the Commission against Jenkins and Locke, an administrative law judge issued Initial Decisions barring Jenkins from associating with any broker, dealer or investment adviser and barring Locke from acting as an investment adviser. Those Initial Decisions became final in March 2012.


Latest News

Saving and investing app, Moneybox, has doubled the number of ETFs available on the platform, in the light of ‘growing..
Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..
Confidence in the continuing strength of bitcoin and Ethereum is driving wider interest in altcoins and other digital assets, according..

Related Articles

Graham MacKenzie, Toronto Stock Exchange
The evolution of ETFs has been a multi-decade experience for Toronto Stock Exchange says Graham MacKenzie, managing director, Exchange Traded...
Frank Koudelka, State Street Global Services
ETF data provider and ETF Express data partner, Trackinsight, has published its Global ETF Survey 2024 Report: ‘50+ Charts on...
Matteo Greco, Research Analyst at Fineqia International writes that bitcoin (BTC) ended the week at approximately USD52,150, showing a notable...
US Distribution Awards trophies
The winners of the first US ETF Distribution Awards at the Exchange conference, hosted by ETF Express and sponsored by...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by